Sri Shyam Sunder Ghosh, Kolkata V. I.T.O.,Ward-50(4), Kolkata

ITA 1337/KOL/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4953 (ITAT-KOLKATA)
• Duration Of Justice: 8 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2020
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 13-01-2020
• Assessment Year: 2014-2015
• Appeal Filed On: 30-05-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: JAYANTA KHANRA
• Assessee Lawyers: SUJAY SEN
• Section: 133A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH (SMC), KOLKATA [BEFORE SHRI P.M. JAGTAP, VICE PRESIDENT (KZ)] I.T.A. NO. 1337/KOL/2019 ASSESSMENT YEAR: 2014-15 SHRI SHYAM SUNDER GHOSH.................................................................APPELLANT C/O. M/S. SALARPURIA JAJODIA & CO., 7, C.R. AVENUE, 3 RD FLOOR, KOLKATA 700 072. [PAN: ADNPG 5721 C] VS ITO, WARD 50(4), KOLKATA................................RESPONDENT 54/1, RAFI AHMED KIDWAI ROAD, 2 ND FLOOR, KOLKATA 700 016. APPEARANCES BY: SHRI SUJAY SEN, ADVOCATE APPEARING ON BEHALF OF THE ASSESSEE. SHRI JAYANTA KHANRA, JCIT, SR. DR APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : JANUARY 13, 2020 DATE OF PRONOUNCING THE ORDER : FEBRUARY 21, 2020 ORDER THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT(A) 15, KOLKATA DATED 29.03.2019 AND THE SOLITARY ISSUE INVOLVED THEREIN RELATES TO THE ADDITION OF RS. 3,05,429/- MADE BY THE AO ON ACCOUNT OF ALLEGED PROFIT ON UNDISCLOSED SALES WHICH IS SUSTAINED BY THE LD. CIT(A0 TO THE EXTENT OF RS. 22,810/-. 2. THE ASSESSEE IN THE PRESENT CASE IS AN INDIVIDUAL. A SURVEY U/S 133A OF THE ACT WAS CARRIED OUT AT THE BUSINESS PREMISES OF THE ASSESSEE ON 30.09.2013. THEREAFTER, THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED BY THE ASSESSEE ON 30.11.2014 DECLARING A TOTAL INCOME OF RS. 16,69,200/-. AS NOTED BY THE AO, A SURVEY WAS ALSO CARRIED OUT AT THE BUSINESS PLACE OF SHRI ARUP KR. DEB WHO WAS A SUPPLIER OF THE ASSESSEE. IN THE STATEMENT RECORDED DURING THE COURSE OF SURVEY, IT WAS STATED BY SHRI ARUP KR. DEV THAT THE BANK 2 I.T.A. NO. 1337/KOL/2019 ASSESSMENT YEAR: 2014-15 SHRI SHYAM SUNDER GHOSH DEPOSITS FOUND TO BE MADE IN HIS BANK ACCOUNT AGGREGATING TO RS. 13,39,014/- REPRESENTED THE SALE PROCEEDS OF THE ASSESSEES BUSINESS AND THE SAME WERE DEPOSITED BY THE CUSTOMERS OF THE ASSESSEE IN HIS BANK ACCOUNT. ALTHOUGH THE ASSESSEE DENIED THIS ALLEGATION MADE BY SHRI ARUP KR. DEB, THE AO KEEPING IN VIEW THE CATEGORICAL STATEMENT MADE BY SHRI ARUP KR. DEV ON OATH AND THE RELEVANT DETAILS OF DEPOSITS GIVEN BY HIM DATE WISE, HELD THAT THE AMOUNT OF RS. 13,39,014/- REPRESENTED SUPPRESSED SALES OF THE ASSESSEE. ACCORDINGLY, GROSS PROFIT OF RS. 3,05,429/- CALCULATED @ 22.81% ON SUCH SALES WAS TREATED BY HIM AS THE INCOME OF THE ASSESSEE AND ADDITION TO THAT EXTENT WAS MADE BY HIM TO THE TOTAL INCOME OF THE ASSESSEE. 3. THE ADDITION OF RS. 3,05,429/- MADE BY THE AO ON ACCOUNT OF THE ALLEGED PROFIT ON UNDISCLOSED SALES WAS CHALLENGED BY THE ASSESSEE IN THE APPEAL FILED BEFORE THE LD. CIT(A) AND KEEPING IN VIEW THAT THE RELEVANT DEPOSITS FOUND TO BE MADE IN THE BANK ACCOUNT OF SHRI ARUP KR. DEV ONLY TO THE EXTENT OF RS. 1 LAKH WERE PERTAINED TO THE YEAR UNDER CONSIDERATION, THE LD. CIT(A) RESTRICTED THE ADDITION OF RS. 3,05,429/- MADE BY THE AO TO RS. 22,810/- BEING GROSS PROFIT @ 22.81% OF RS. 1 LAKH. STILL AGGRIEVED BY THE ORDER OF THE LD. CIT(A), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE LEARNED COUNSEL FOR THE ASSESSEE HAS CONTENDED THAT THE IMPUGNED ADDITION ON ACCOUNT OF THE ALLEGED PROFIT ON UNDISCLOSED SALES IS MADE MERELY ON THE BASIS OF THE 3 I.T.A. NO. 1337/KOL/2019 ASSESSMENT YEAR: 2014-15 SHRI SHYAM SUNDER GHOSH STATEMENT OF A THIRD PARTY WHICH WAS OUT RIGHTLY DENIED BY THE ASSESSEE RIGHT FROM THE BEGINNING. IT IS HOWEVER OBSERVED THAT SHRI ARUP KR. DEV WAS A SUPPLIER OF THE ASSESSEE AND THE ASSERTION REGARDING SALE PROCEEDS OF THE ASSESSEES BUSINESS HAVING BEEN DEPOSITED IN HIS BANK ACCOUNT BY THE CUSTOMERS OF THE ASSESSEE WAS MADE BY HIM IN THE STATEMENT RECORDED ON OATH. MOREOVER, THE DATE WISE DETAILS OF SUCH DEPOSITS WERE ALSO FURNISHED BY SHRI ARUP KR. DEV. THE LEARNED COUNSEL FOR THE ASSESSEE HAS ALSO CONTENDED THAT THE OPPORTUNITY TO CROSS-EXAMINE SHRI ARUP KR. DEV WAS NEVER GIVEN TO THE ASSESSEE. IN THIS REGARD, IT IS OBSERVED THAT THE COPY OF STATEMENT OF SHRI ARUP KR. DEV RECORDED DURING THE COURSE OF SURVEY WAS GIVEN BY THE AO TO THE ASSESSEE AND THERE IS NOTHING ON RECORD TO SHOW THAT THE CROSS-EXAMINATION OF THE DEPONENT WAS EVER SOUGHT BY THE ASSESSEE. KEEPING IN VIEW ALL THESE FACTS AND CIRCUMSTANCES OF THE CASE, I AM OF THE VIEW THAT THE IMPUGNED ORDER OF THE LD. CIT(A) SUSTAINING THE ADDITION MADE BY THE AO ON THIS ISSUE TO THE EXTENT OF RS. 22,810/- DOES NOT CALL FOR ANY INTERFERENCE AND UPHOLDING THE SAME, I DISMISS THIS APPEAL FILED BY THE ASSESSEE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST FEBRUARY, 2020. SD/- (P.M. JAGTAP) VICE PRESIDENT DATED: 21/02/2020 BISWAJIT, SR. PS 4 I.T.A. NO. 1337/KOL/2019 ASSESSMENT YEAR: 2014-15 SHRI SHYAM SUNDER GHOSH COPY OF ORDER FORWARDED TO: 1. SHRI SHYAM SUNDER GHOSH, C/O. M/S. SALARPURIA JAJODIA & CO., 7, C.R. AVENUE, 3 RD FLOOR, KOLKATA 700 072. 2. ITO, WARD 50(4), KOLKATA. 3. THE CIT(A) 4. THE CIT 5. DR TRUE COPY, BY ORDER, ASSISTANT REGISTRAR / H.O.O. ITAT, KOLKATA